Russia sells gas to China for half the price of Europe

Over the next three years, Russia plans to sell natural gas to China via pipeline at half the price it sells to Europe.

Bloomberg quoted the content of the 2026 economic outlook report submitted to Russian Prime Minister Mikhail Mishustin on September 8, showing that next year the average price of gas sold to China is expected to be 271 USD per 1,000 m3.

The figure for customers in Europe and Türkiye is $481. This difference is expected to persist until 2026.

The estimates shed new light on the $400 billion project between Russian gas giant Gazprom and China National Petroleum Corporation (CNPC). Gazprom's biggest project to date will supply gas via the Power of Serbia pipeline. Previously, pricing details were not made public, with Russian President Vladimir Putin saying only that gas prices would be set based on crude oil prices.

Russia has been tightening its energy ties with China for years, a process that accelerated after the war in Ukraine broke out early last year. China’s importance to Gazprom has increased after the Russian gas giant cut supplies to Europe, once its biggest customer.

Last year, Russia sold gas to China for an average of $277 per 1,000 cubic meters. The price for Europe and Türkiye was $983. Gas prices in Europe rose to a record high last year due to tight energy supplies.

This year, Russia plans to sell gas to China at an average price of $297 per 1,000 cubic meters. The price for Europe and Türkiye is $501.

Russia is also expected to export 97 billion cubic meters of gas via pipeline this year, down from more than 131 billion cubic meters last year. That figure is expected to rise to 126 billion cubic meters by 2026, thanks to increased supply via the Power of Siberia pipeline.

Ha Thu (according to Bloomberg)

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